Billy Williams persuaded his friend to invest £40,000 in his Darlington-based property company with the idea being to buy and redevelop a house before splitting the profits.
Teesside Crown Court heard how the victim trusted the 41-year-old so much that he left him his bank card while he went travelling in Thailand for several months.
Albany Kidd, prosecuting, said during that time the defendant plundered the ex-serviceman’s account of a further £18,000 which he spent on himself.
The court heard how the victim, who has since died, was left almost penniless and a broken man as a result of Williams’ betrayal.
Ms Kidd said the initial £40,000 paid into Graphene Property Solutions, which had a registered address on Banks Road, Darlington, had never been used to purchase a property.
Instead, some of it was transferred into another person’s bank account to cover a £11,000 debt accrued by the defendant or it was used to pay for his personal expenses.
“There was very little outgoings indicative of business activity, the majority of payments were made into the defendant’s account marked as wages,” she said.
“There was also payments indicative of personal spending from the Graphene Solutions Account.”
In a victim impact statement made before he died, the victim said he had been left almost penniless by his friend’s deception.
The man added: “My life since this incident has become very hard, I have spent most of my life serving in the Army and four years ago, I had a stroke leaving me with limited mobility.
“I inherited some money and after speaking to Billy Williams, he convinced me that investing the money would help me in the long run.”
Williams, of Stirling Way, Thornaby, pleaded guilty to two counts of fraud between September 2021 and May 2022 when he spent a total of £58,793.09 of his friend’s money.
Elisha Marsay, mitigating, said her client had been left feeling ashamed of his actions and had taken full responsibility for the financial loss to his friend.
She said: “It fills him with deep regret that he did this to someone who was his friend and he had been friends with sometime and he put his friend in the position that he described.
“He has expressed deep regret and remorse.”
Judge Edward Legard sentenced Wiliams to two years in prison suspended for two years.
He said: “The fact that the victim didn’t insist on any written agreement or contract, demonstrated that he trusted you implicitly and unconditionally.
“When he returned home from Thailand, it soon dawned on him, much to his horror, that rather than you investing £40,000 in property renovation, you had spent a large part of it funding your lifestyle.
“A lifestyle to which you had previously been accustomed. As mush as £30,000 had been paid into your bank as wages – that was clearly fictitious as there was nothing to show for any work undertaken by you.”
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Williams was ordered to carry out 200 hours of unpaid work and attend 30 rehabilitation activity requirement days.
A proceeds of crime hearing will be heard at a later date to see what money could be repaid to the victim’s estate.
The judge added: “What you did was unconscionable, you took advantage of someone who considered you to be a friend and you betrayed his trust in the post appalling way.
“There was never any intention of purchasing a property, let alone renovating one.”